BILL NUMBER: SB 290	CHAPTERED  07/13/99

	CHAPTER   97
	FILED WITH SECRETARY OF STATE   JULY 13, 1999
	APPROVED BY GOVERNOR   JULY 13, 1999
	PASSED THE ASSEMBLY   JUNE 30, 1999
	PASSED THE SENATE   APRIL 29, 1999
	AMENDED IN SENATE   APRIL 12, 1999

INTRODUCED BY   Senator Kelley

                        FEBRUARY 2, 1999

   An act to amend Section 8 of the County Water Authority Act
(Chapter 545 of the Statutes of 1943), relating to county water
authorities.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 290, Kelley.  County water agencies:  indebtedness.
   (1) The County Water Authority Act authorizes the formation of
county water authorities.  The act authorizes a county water
authority to incur a specified debt by contract and requires, among
other things, any proposal to purchase, lease, or otherwise acquire
rights, privileges, or services by contract, the compensation of
which is payable over a period exceeding 20 years, to be approved by
the voters of that authority.
   This bill would, instead, require any proposal by a county water
authority to purchase, lease, or otherwise acquire rights,
privileges, or services by contract, the compensation of which is
payable over a period that exceeds 40 years, to be approved by the
voters of that authority.  The bill would subject a proposal to
lease, purchase, or otherwise acquire rights, privileges, or services
by contract, the compensation of which is payable over a period that
exceeds 20 years but is not more than 40 years, to referendum.  By
imposing additional duties on local public agencies, this bill would
impose a state-mandated local program.
  (2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8 of the County Water Authority Act (Chapter
545 of the Statutes of 1943) is amended to read:
  Sec. 8.  (a) An authority may incur indebtedness by contract other
than by voting bonds or expenditure of bond proceeds up to a total
amount equal to one-tenth of 1 percent of the assessed  value, as
defined in Section 135 of the Revenue and Taxation Code, or as
otherwise hereafter defined by an act of the Legislature, of property
taxable for authority purposes by a vote of three-fourths or more of
the aggregate number of votes of all members of the board of
directors.  Any proposal to incur an indebtedness in excess of that
amount by contract other than by voting bonds or expenditure of bond
proceeds, and any proposal to purchase, lease, or otherwise acquire
rights, privileges, or services by contract, the compensation for
which shall be payable over a period exceeding 40 years, shall be
submitted to the qualified electors of the authority for their
approval and shall be voted upon at an election where the proceedings
are held, insofar as applicable, in the manner provided in this act
for the authorization and issuance of the bonds of the authority,
except that the vote of a majority of the electors voting upon the
proposition shall be sufficient to authorize the incurring of the
indebtedness.  Notice of the election shall contain, in addition to
the information required in the case of bond elections, a statement
of the maximum amount of money to be paid under the contract,
exclusive of penalties and interest, for what purposes the money is
to be expended, and the property, improvements, works, rights,
privileges, or services to be acquired thereby.  The ballots at the
election shall contain a brief statement of the general purposes of
the contract and the amount of the obligation to be assumed, with the
words "Contract--Yes" and "Contract--No."  The board of directors
may submit the contract or proposed contract to the superior court of
the county where the authority is located to determine the validity
of the contract and the legal authority of the board to enter into
the contract, with the same proceedings to be held as provided in
this act in the case of the judicial determination of the validity of
bonds issued pursuant to this act and with like effect.
   (b) A proposal to purchase, lease, or otherwise acquire rights,
privileges, or services by contract for which the compensation shall
be payable over a period that exceeds 20 years but is not more than
40 years, is subject to referendum.  To initiate a referendum, a
petition protesting the proposed action shall be signed by voters
within the jurisdiction of the authority equal in number to at least
5 percent of the entire number of votes cast within that jurisdiction
for all candidates for governor at the last gubernatorial election.

   (c) If a proposition to consider the issuance of revenue bonds
under the Revenue Bond Law of 1941 (Chapter 6 (commencing with
Section 54300) of Part 1 of Division 2 of Title 6 of the Government
Code) has been submitted to the qualified voters of an authority at
an election held for that purpose and received the affirmative vote
of a majority of the electors voting upon the proposition and,
therefore, constitutes authority to issue revenue bonds under the
Revenue Bond Law of 1941, the authority may, in lieu of issuing those
revenue bonds, incur an indebtedness by contract, in addition to the
indebtedness authorized by subdivision (a), in an amount, excluding
penalties and interest, up to the amount authorized by and for the
purpose authorized by the revenue bond proposition.  The indebtedness
shall be payable over a period of not to exceed 30 years, as
provided in the resolution of the board of directors.
   (d) If a contract of indebtedness incurred pursuant to subdivision
(c) is repaid in full because construction of the project approved
by the electorate was not commenced due to administrative, court, or
other delays, resulting in failure to obtain necessary governmental
permits, an authority may incur a second contract of indebtedness
pursuant to subdivision  (c) to fund construction of the project.
The second indebtedness shall not exceed the amount authorized by the
proposition approved by the electorate as provided in subdivision
(c).
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
are the result of a program for which legislative authority was
requested by that local agency or school district, within the meaning
of Section 17556 of the Government Code and Section 6 of Article
XIIIB of the California Constitution.
